The Haryana Government Funds Fraud
Bank accounts opened for a state housing scheme were allegedly used to divert hundreds of crores, with six IAS officers among those chargesheeted this year in a case still being built chargesheet by chargesheet.
The Promise
“Bank accounts and funds associated with the Mukhya Mantri Grameen Awas Yojna 2.0 and other Haryana government schemes will be used only for their disclosed public purpose.”
— Government of Haryana, in accounts held at IDFC First Bank, AU Small Finance Bank, and Kotak Mahindra Bank, State government scheme administration and its banking partners · 1 January 2025
Investigators allege large-scale irregularities in bank accounts linked to the Mukhya Mantri Grameen Awas Yojna 2.0 rural housing scheme and other Haryana government departmental accounts.
The Standard
Government scheme funds held and disbursed only for their intended public purpose, with bank accounts operated under proper departmental authorisation and oversight.
Standard state treasury controls and banking-sector KYC and account-authorisation norms.
In force from 1 January 2025
The Reality
A major financial fraud was uncovered at Chandigarh branches of IDFC First Bank, AU Small Finance Bank, and Kotak Mahindra Bank in February 2026, reported at approximately ₹950 crore. The CBI's parallel, more specifically quantified case around IDFC First Bank and AU Small Finance Bank put the loss at ₹504 crore. By its third chargesheet, the CBI had named 19 accused, including six IAS officers of the Haryana cadre, bank officials, and state government department employees, after searches at 54 locations that recovered gold valued at roughly ₹20 crore.
As of 1 September 2026
The Gap
Bars share a single zero-based scale. No axis truncation is used to exaggerate or minimize the gap between the two figures.
Timeline
- StatusFraud uncovered
Irregularities are discovered in scheme-linked bank accounts at three private banks' Chandigarh branches.
- StatusCBI searches 54 locations
The agency recovers gold valued at roughly ₹20 crore during searches connected to the case.
- StatusThird chargesheet filed
The CBI names 19 accused in total, including six Haryana-cadre IAS officers.
Legal Status
This is a stub entry. Multiple chargesheets have been filed naming 19 accused including senior civil servants; this investigation has not yet traced the case to a trial verdict for any individual.
Verdict
Preliminary verdict, pending fuller research: the scale of the fraud and the involvement of senior IAS officers are documented across three CBI chargesheets. This investigation has not yet reconciled the differing scale figures reported, nor established the trial's progress.
This entry was added to establish the case's place in the site's timeline and its headline facts, drawn from ongoing 2026 reporting. It has not yet received the same depth of research as the site's fully developed cases.
What remains incomplete
- This is a stub entry. Named individuals beyond the general reference to 'six IAS officers' have not yet been detailed here.
- The relationship between the ₹950 crore and ₹504 crore figures has not been reconciled.
- The scheme-level impact — whether intended housing beneficiaries were denied funds as a result — has not been assessed in this entry.
Sources
Related investigations
The Amrapali Group Homebuyers Fraud
Amrapali Group took money from over 40,000 homebuyers for Noida and Greater Noida flats, then diverted thousands of crores of that money into unrelated ventures while construction stalled for years. The Supreme Court eventually cancelled the group's RERA registration and handed its projects to state-run NBCC to finish.
The Jaypee Infratech Insolvency and Homebuyers Case
Jaypee Infratech sold flats to over 20,000 homebuyers along the Yamuna Expressway, then defaulted on bank loans and entered insolvency in 2017. It took nearly seven years, a Supreme Court intervention, and two competing bidding rounds before the Suraksha Group finally took over the company in 2024 — with many buyers still waiting more than 15 years for possession.
The Unitech Group Homebuyers Fraud
Unitech collected over Rs 14,000 crore from nearly 30,000 homebuyers for flats it never finished, while a Supreme Court-ordered audit found its promoters had diverted thousands of crores abroad. The Chandra brothers spent years in jail, the government took over the company's board, and thousands of buyers are still waiting for their homes.